$5. a gallon for heating oil-why? I was asked this by one of my students recently. There are many factors that are falling into play to make heating oil unaffordable here in Connecticut this winter. One area which is complex to understand is the futures market for heating oil. To try to tie in the futures/hedge fund/investment bank market for heating oil, we must understand that most futures are bought on margin while your local oil company who is delivering your heating oil probably had to pay cash up front for his load of oil. I wonder aloud is this fair? The speculator only has to invest a small amount of the actual amount bought while the person making a living from it has to cover the whole amount. Who will make more profit? Obviously the futures trader.
The simplest solution for high heating oil prices is to build more refineries and drill offshore for oil and finally become energy independent in our country. I know 35 years is a long time for Congress to place the good of the country over their personal self interest but enough is enough.
The time has come to drill and produce in the United States. I wonder how many Connecticut citizens will freeze this winter and I truly wonder if Congress has the guts to act.
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2 comments:
Luckily I was able to find some decently priced heating oil in Warrington, PA. It took some time and research, but all of the hours I spent looking were definitely spent well. I hope you can also find decently priced oil soon.
When I read posts like this, I'm really happy that I don't have to pay for heating oil right now. When my parents got their bill it was always over $1,000. They're switching to natural gas now, but I always thought the prices were ridiculously high.
Claudia Rosenburg | http://www.dysarts.com/feed.php?num=&news_id=93&feed_id=50
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